By Jonathan Deesing
Driven by advances in technology, the American workforce has become increasingly mobile, in every sense of the word, over the past decade. In fact, the population of mobile workers in the United States is expected to swell from 96.2 million in 2015 to 105.4 million in 2020. That will represent nearly three-quarters of the U.S. workforce.
So what is a “mobile workforce,” anyway? First, mobile workers can—and want to—work from anywhere. And because they’re not chained to an office, they’re willing to relocate more frequently for work opportunities. Finally, of course, mobile workers use mobile technology to do their jobs, just like they use it in other areas of their lives, from ordering takeout to house hunting.
By understanding how these factors come into play when mobile workers set out to buy a house, real estate investors can sell homes faster and at higher prices.
Be More Social
Being part of a mobile workforce blurs the lines between work and personal life: people are always “on,” always connected. Keep this in mind when marketing your property. Certainly, use Trulia, Zillow, Realtor.com, and Redfin for your home listing, but also share the information in relevant Facebook communities and across your social networks. You never know where your next buyer may come from.
The mobile workforce uses technology such as iPads and smartphones to do their jobs, and they transition easily to house hunting on these devices. In fact, they’re starting to be able to buy homes on mobile devices as well. For example, Auction.com, an online real estate marketplace, has both an iPad and an iPhone app that buyers have used to buy homes online while they’re roaming across the country. So from 3D video tours to computer-generated floor plans, consider ways you can use technology to make your house the most appealing in the area.
Just as more work takes place outside the office today, more real estate sales take place outside the confines of traditional house tours. If you’re working with a real estate agent or broker to sell your investment property, expect them to use additional tools, time, and creativity laying the groundwork for a sale.
Reach beyond State Borders for Buyers
People who move frequently for work are often perfectly comfortable making a decision on a home before they’ve seen it in person, so expect potential buyers from different states. For them, face-to-face interaction is less important than showing them the features they want and need in a new home.
“We’ve seen bidders from over 100 countries use our online marketplace,” notes Auction.com Executive Vice President Rick Sharga. “Investors looking for the broadest possible market exposure to buyers should consider working with a partner that offers a global marketing platform.”
Help encourage a sale to relocating homeowners by providing them not only with information about the property, but tips about local restaurants, school districts, job opportunities, and cultural attractions as well.
Keep Key Selling Points in Mind
What does this mobile workforce look for in a home? If there’s one thing most people expect wherever they put down roots, it’s the availability of a strong Internet connection. Areas with fiber-optic Internet service will appeal more than a house with limited Internet connectivity options. For people that work from home, a bonus room that can be set up as a home office or studio is a strong selling point.
One aspect of house hunting hasn’t changed with the workforce: buyers are still seeking a safe area with good schools. But unlike previous years, they are less likely to rely on the real estate agent’s feedback and instead do their own research online to find a place that is safe and family friendly.
Consider Unconventional Financing
An on-the-move workforce does present some challenges to sellers, particularly in the area of financing. Successful freelancers or high-tech entrepreneurs may not have the predictable salary history that banks love. A mobile worker may have moved frequently to pursue better jobs, resulting in what may appear to be an unstable job history or gaps in employment.
As a result, if you’re selling a home to someone like this, you may need to consider less-conventional financing arrangements, such as rent-to-own agreements and seller financing. (The latter is known by a variety of names, such as seller-carried financing or seller-holds-mortgage agreements.) You might also consider auctioning your property in an online marketplace such as Auction.com, which offers financing options on some properties.
Don’t Expect Them to Stay
You may need to adjust your investing strategy, too. Instead of flipping your property, you might consider keeping it to rent. For a workforce on the go, renting a house offers a short-term way to establish a household and take roots in a community without the commitment of homeownership.
But be careful: this demographic may not always make for the best renters. As the job-hopping millennial generation becomes an even larger part of the mobile workforce, you can expect tenants to move more often for better job opportunities or to experience a different region. If a potential renter’s last five jobs were in five separate states, it’s probably best to wait for a more stable tenant. On the other hand, this mobility can be good news for short-term investors, who can look to flip more houses and find investment properties more easily in this extremely agile marketplace.
As you can see, the mobile workforce offers both challenges and opportunities to real estate investors. By understanding what influences them and leveraging their tools, you’ll connect more easily with prospective buyers, earn their trust, and make the sale.
Jonathan Deesing is a relocation specialist with imove.com, where he writes about all things moving and packing. Most of his free time is spent popping bubble wrap and making cardboard box forts.
